Exhibit 12-2 -In an Economy Characterized by the Aggregate Expenditure Line in Expenditure

question 217

Multiple Choice

Exhibit 12-2
-In an economy characterized by the aggregate expenditure line in Exhibit 12-2, how would a $100 decrease in autonomous net taxes impact real GDP?

• A)decrease real GDP by $200
• B)decrease real GDP by $100
• C)no impact on real GDP
• D)increase real GDP by $100
• E)increase real GDP by $200

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Definitions:

Amoral Manager

A manager who fails to consider the ethics of her or his behaviour.

Ethical Implications

The potential impact or consequences of actions or decisions on moral principles and standards.

Ethics Intensity

The extent to which an ethical issue demands moral reflection or action, influenced by its potential impact on stakeholders and society.

Magnitude

The size, extent, or importance of something, often indicating its significant impact or intensity.